FINANCIAL STATEMENT BULLETIN Klaus Andersen, CEO Martti Nurminen, - - PowerPoint PPT Presentation

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FINANCIAL STATEMENT BULLETIN Klaus Andersen, CEO Martti Nurminen, - - PowerPoint PPT Presentation

FINANCIAL STATEMENT BULLETIN Klaus Andersen, CEO Martti Nurminen, CFO Q4/2019 February 4, 2020 Financial Statement Bulletin IMPORTANT NOTICE The following information contains, or may be deemed to contain, forward-looking statements. These


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Q4/2019

Financial Statement Bulletin

FINANCIAL STATEMENT BULLETIN

Klaus Andersen, CEO Martti Nurminen, CFO February 4, 2020

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IMPORTANT NOTICE

The following information contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or future financial performance, including, but not limited to, expectations regarding market growth and development as well growth and profitability of Basware. In some cases, such forward-looking statements can be identified by terminology such as “expect”, “plan”, “anticipate”, “intend”, “believe”, “estimate”, “predict”, “potential”, or “continue”, or the negative of those terms or

  • ther comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to

events and depend on circumstances that may or may not occur in the future. Future results may vary from the results expressed in,

  • r implied by, the forward-looking statements, possibly to a material degree. All forward-looking statements included herein are

based on information presently available to Basware and, accordingly, Basware assumes no obligation to update any forward- looking statements, unless obligated to do so pursuant to an applicable law or regulation. Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or the solicitation

  • f an offer to buy any securities of Basware or otherwise to engage in any investment activity.

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Strong performance in profitability

KEY TAKEAWAYS

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Order intake EUR 6.9 million for the quarter Revenues in line with full year guidance

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Basware named an industry leader by Forrester

CONTINUED INDUSTRY LEADERSHIP

4

Basware featured in SAP App Center SirionLabs application partnership signed

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Basware scores highly in 10 criteria, including:

Basware is a Leader in The Forrester Wave™ report: eProcurement Platforms, Q4 2019

“Basware is a leading choice for CPOs and CFOs who hope to achieve 90% or more process automation across their P2P spend, including simple and complex categories. It excels at automating capture and processing of many different types of invoices, including milestone, time, and periodic billing.“

5/5 in Product strategy 5/5 in Globalization 4.2/5 in Invoice processing

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6

CUSTOMER SUCCESS

EXAMPLES OF CUSTOMER WINS SIGNED IN 2019

+ 15%

average deal size 2018 to 2019

+ 38%

growth in new customer acquisition 2018 to 2019

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BUSINESS DEVELOPMENT IN H2/19

Gross margin, %

+5

percentage points H1/19 → H2/19

Consulting revenue

+2M€

H1/19 → H2/19

Order intake

+8%

H1/19 → H2/19

+9.2M€

Adjusted EBITDA

improvement from H1/19 to H2/19

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STRONG CLOUD METRICS

Cloud Gross margin

65%

Gross renewal rate

95%

Net renewal rate

104% 7x

LTV / CAC Ratio

At end of 2019

Cloud Non-Cloud

70%

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FINANCIAL REVIEW

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2019 FINANCIAL HIGHLIGHTS

Cloud growth*

+13%

Total growth*

+6%

10

Adjusted EBITDA

EUR 5.2 million

*Organic constant currency basis.

Cloud growth*

+14%

Total growth*

+7%

Adjusted EBITDA

EUR 2.5 million 2019 Q4/19

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CLOUD ORDER INTAKE

EUR million

  • All time high

quarterly order intake

  • Average new

customer deal size continued to develop positively

  • Growth on organic

constant currency basis 15% in Q4/19 and 9% in 2019

Annual recurring revenue gross order intake is calculated by summing the total

  • rder intake in the period expressed as an annual contract value.

11 0.0 2.0 4.0 6.0 8.0 10.0 12.0

Q4/2018 Q4/2019

5.9 6.9

0.0 5.0 10.0 15.0 20.0 25.0

FY 2018 FY 2019

21.5 23.7

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NET SALES PROGRESSION

  • Overall, net sales performance in line with expectations
  • Cloud revenue growth accelerating compared with Q3 '19
  • Continued Consulting revenue growth

*On an organic basis at constant currencies

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Net sales by revenue type, EUR thousand Q4/2019 Q4/2018 Change, % Change, %* 2019 2018 Change, % Change, %* Cloud 27,390 23,916 14.5 13.9 101,442 89,482 13.4 12.9 Consulting 6,978 6,063 15.1 15.1 24,962 23,567 5.9 7.7 Maintenance, license and

  • ther

4,897 6,508

  • 24.8
  • 24.4

21,889 28,368

  • 22.8
  • 18.5

Total 39,264 36,488 7.6 7.3 148,302 141,417 4.9 5.9

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PROFITABILITY

  • The execution
  • f the

productivity programme has reduced total costs and improved profitability

  • EBITDA lower

than Q3 mainly due to cost seasonality

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EUR thousand Q4/2019 Q4/2018 Change, % 2019 2018 Change, % Net sales 39,264 36,488 7.6 148,302 141,417 4.9 Cost of sales

  • 18,294
  • 17,026

7.5

  • 71,493
  • 69,620

2.7 Gross profit 20,970 19,462 7.8 76,810 71,797 7.0 S&M

  • 11,798
  • 11,969
  • 1.4
  • 45,190
  • 43,041

5.0 R&D

  • 6,597
  • 6,848
  • 3.7

26,815

  • 27,222
  • 1.5

G&A

  • 3,716
  • 4,061
  • 8.5
  • 14,572
  • 16,247
  • 10.3

Total operating expenses

  • 22,111
  • 22,878
  • 3.4
  • 86,577
  • 86,510

0.1 Other operating income and expenses

  • 374
  • 433
  • 13.5
  • 4,770

13,242 Operating profit (EBIT)

  • 1,516
  • 3,850

60.6

  • 14,537
  • 1,471

Adjustments 85 431

  • 80.2

3,781

  • 13,581

Depreciation and amortization

  • 3,911
  • 2,593

50.8

  • 15,941
  • 10,688

49.2 Adjusted EBITDA 2,480

  • 826

5,185

  • 4,364
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FREE CASH FLOW METRIC

  • 4,836
  • 7,787
  • 3,129
  • 4,076
  • 7,816
  • 9,794
  • 1 445
  • 4,774

Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Q4/2019

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EUR thousand Q4/2019 Q4/2018 2019 2018 EBITDA 2,395

  • 1,257

1,403 9,217 Capitalizations

  • 2,588
  • 2,277
  • 10,617
  • 10,933

Finance expenses

  • 2,722
  • 567
  • 9,091
  • 2,080

Taxes, excl. deferred taxes

  • 825
  • 302
  • 1,341
  • 961

Payment of lease liabilities1

  • 1,246
  • 4,372
  • Share based compensation,

share part 212 327 188 1,229 Gain/loss on sale of assets

  • 16,300

Free cash flow metric

  • 4,774
  • 4,076 -23,829
  • 19,829
  • Profitability

improved but did not fully offset the increase in finance expenses

  • Basware expects

to reach positive free cash flow on a run-rate basis by the end of 2020

1 Payment of lease liabilities in 2018 are included in EBITDA.

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CASH FLOW AND BALANCE SHEET

  • The improvement in

cash flows was due to higher profitability, and improvement in working capital

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EUR thousand Q4/ 2019 Q4/ 2018 2019 2018 Cash flows from operating activities 4,724

  • 2,840

4,159

  • 6,261

Net change in cash and cash equivalents 1,016

  • 5,323
  • 9,170

20,135 Cash and cash equivalents 31,672 40,747 31,672 40,747 Gross financial debt 60,885 57,206 60,885 57,206 Net financial debt 29,213 16,459 29,213 16,459 Gross debt including leases* 77,689 57,206 77,689 57,206 Net debt including leases* 46,017 16,459 46,017 16,459

*Comparison impacted by IFRS16 methodology change

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OUTLOOK

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Net sales to grow at around the same rate as in 2019* Positive EBIT

OUTLOOK FOR 2020

FOR 2020 BASWARE EXPECTS THE FOLLOWING

*On an organic basis at constant currencies

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Strong performance in profitability

KEY TAKEAWAYS

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Order intake EUR 6.9 million for the quarter Revenues in line with full year guidance

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